"For decades, Chinese
companies have availed themselves of the benefits of US financial markets, and
capital raised in the US has helped fuel China's rapid economic growth,"
Trump said.
President Donald
Trump on Thursday said that it is wrong and dangerous for China to benefit
from US capital markets without complying with critical protections that investors
rightfully deserve. He issued a memorandum to protect American investors from
Chinese companies.
"For decades,
Chinese companies have availed themselves of the benefits of US financial
markets, and capital raised in the US has helped fuel China's rapid economic
growth," Trump said.
The memorandum was
issued to Secretary of State Mike Pompeo and other members of the top national
security leadership.
"While China
reaps advantages from US markets, the Chinese government has consistently
prevented Chinese companies and companies with significant operations in China
from abiding by the investor protections that apply to all companies listing on
US stock exchanges," Trump alleged.
"China's
actions to thwart our transparency laws raise significant risks for investors.
The time has come to take firm action in an orderly fashion to put an end to
the practice that has tacitly permitted companies with significant Chinese
operations to flout protections United States law requires for investors in
United States markets," Trump said.
Meanwhile, Mike
Pompeo plans to warn American investors against 'fraudulent' accounting
practices of China-based companies and suggest the Nasdaq's recent decision to
tighten listing rules for such players should be a model for all other
exchanges around the world.
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